The 57-year-old congressman from Holland told members of the Royal Oak Chamber of Commerce Wednesday that increased sales taxeswould "totally eliminate some other taxes." Specifically, he mentioned the small business and personal property taxes, both of which he said are hurting businesses in the state.
"My preference is to spread the sales tax over a broader base and to raise the rate," Hoekstra said in response to a question. "There is no perfect tax system."
Currently the state's 6 percent sales tax does not apply to groceries and medication.
This isn't a secret. It's downplayed, but no secret, and it is probably a good reason that Hoekstra didn't get the Michigan Chamber endorsement. It's also a big reason why I'm supporting Mike Cox as the best alternative to the beltwayitis of Hoekstra.
More below the fold ~
I don't like the small business or personal property tax, but this small business owner is KILLED with a services tax. Absolutely killed. Reduce the business taxes, yes, but don't KILL the services industry with a tax increase. Cut the damn spending.
We all know Andy Dillon supports higher taxes, but I'm a little disappointed in Hoekstra. He was until this my second choice for governor, and one where I wouldn't have to hold my nose in supporting outside of that one bailout vote that left me a bit sour. Well, now the bailout vote isn't the only thing that has me sour.
Beverly Hills -- Two early poll leaders in the Michigan governor's race -- Democrat Andy Dillon and Republican Pete Hoekstra -- found more common ground than differences Friday in a rare joint appearance at Detroit Country Day School.
They agreed term limits block political relationships in Lansing; it takes too long for businesses to get regulatory permits; right-to-work legislation would be too divisive; and the state needs to retool its tax system, including extending the sales tax to services.
Extending the sales tax to services is a tax increase. We pay more for goods. More money goes to government which has proven itself unable to live within its means. Just as Pete Hoekstra voted to bailout the banks which fubared, he now wants to bail out government by taxing others like a democrat.
Hoekstra said Michigan has a "crazy" business climate that drives investors to other states. He called for elimination of the Michigan Business Tax, as well as the levies businesses pay on equipment, and lowering the state income tax and the property tax on second homes to spur more out-of-state people to buy here. He favors initially ratcheting down the sales tax and extending it to services, but then going to voters to ask for a sales tax boost to offset reductions in other taxes</div>
It's easy to be against the MBT. It was a poorly thought out rush job of a replacement to the bad Single Business Tax. (Thanks to Joe Hune for opposing that piece of crap). I oppose that too, but we have a spending problem more than a revenue problem, and punishing the types of businesses that may be growing is a piss poor way to spur growth. I'm fairly certain though that Pete Hoekstra's plan is a duplicate of self proclaimed "Business Leaders for Michigan" and Granholm's plan of a measly 1/2 cent cut on sales tax only to tax services at that race. It's a tax increase. Period, and needs to be opposed 100%. It was wrong when Granholm wanted a two penny tax. It's worse with BLFM's 5.5 cent per dollar tax increase.
It was fiscal liberalism from Republicans that cost us both the state house and congress in 2006. We don't need more of the same. Pete Hoekstra unfortunately seems to have caught beltwayitis and is bringing it here. No thanks Pete, and I expected better from you.
